There are four main events that create a financial windfall:
sale of business, lottery win, inheritance, or high net worth
divorce situation. Many people who come into a large sum, say $5
million dollars or more, may not have the necessary experience to
handle this sudden influx of capital. In fact, according to the
National Endowment for Financial Education in the U.S., it is
estimated seven out of 10 people who unexpectedly come into large
sums of money will lose it within seven years.
What do you do if you come into a windfall? Turn to a financial
professional you trust before spending the money. If you don't
already know one, or you want a second opinion, then an objective,
fee-for-service professional who does not have a financial stake in
your investment choices is an ideal person to approach. Interview
at least three, understand what each professional does and what
they do differently to determine the right fit for you and your
needs.
